What is the best way to use file sharing in Wxp.

i.e. share a folder through the network with a password for safe access. (like w98)

I managed to do it by creating the user account that wants to give access to, in the PC that wants to make the share and then give the appropriate permissions. This has a security drawback that with the created user account the user can access the PC locally.
Also when you try to access e.g. an .xls document because the user's account is without admin permissions it creates an 1309 error to open the application.

Therefore is there any other way like a third party software which can just apply a password to specific folders...?